Kristian Stout on SpaceX’s Spectrum Purchase
Communications Daily quoted ICLE Director of Innovation Policy Kristian Stout in an article on SpaceX’s purchase of Grain Management’s 800 MHz spectrum. The piece examines whether the deal could lead SpaceX to build a terrestrial wireless network to compete with major carriers. It also discusses the challenges of building such a network and how the spectrum could strengthen SpaceX’s position in carrier partnerships. Read the full article here.
Kristian Stout, innovation policy director for the International Center for Law & Economics, said the Grain deal is probably part of Musk’s long-term strategy. “Musk has a track record of committing to difficult, capital-intensive things years before they look obvious, and the Grain spectrum fits that pattern,” Stout told us Friday. The 800 MHz spectrum is “the kind of asset you buy if you’re serious about eventually offering terrestrial service, not if you’re just dabbling.”
Stout also said SpaceX would face many challenges in building a network to compete with the big three carriers. But the deal gives SpaceX additional “leverage,” he said. “Spectrum makes partnerships with the carriers more valuable and gives SpaceX a seat at the table in ways a pure satellite player wouldn’t have.”